Employee Performance Management By Katarzyna Jedrys

Employees are: The biggest asset to the company The biggest expense(35%-40%) Employees hold the success or failure of your company in their hands!!!

The biggest asset to the company

The biggest expense(35%-40%)

Employees hold the success or failure of your company in their hands!!!

Therefore, it is crucial to develop performance appraisal systems (PA) Provides foundation for: recruiting and selecting new hires training and development of existing staff motivating and maintaining a quality work force by adequately and properly rewarding their performance

(PA) Provides foundation for:

recruiting and selecting new hires

training and development of existing staff

motivating and maintaining a quality work force by adequately and properly rewarding their performance

Purpose of PA: Evaluative-information of performance standing (promotion, merit increase) Developmental-identification of performance problems (communication, encouragement)

Evaluative-information of performance standing (promotion, merit increase)

Developmental-identification of performance problems (communication, encouragement)

Key Elements of an effective PA System: Clearly defined expectations Company’s mission and goals Performance metrics Training and tools necessary Valid feedback-objectivity Action plan

Clearly defined expectations

Company’s mission and goals

Performance metrics

Training and tools necessary

Valid feedback-objectivity

Action plan

PA measurement methods: Graphic Rating Scale Behaviorally Anchored Rating Scale Narrative Technique Critical-Incident Method Paired Comparison Method Forced Choice Method Forced Distribution Method Management by Objectives Ranking

Graphic Rating Scale

Behaviorally Anchored Rating Scale

Narrative Technique

Critical-Incident Method

Paired Comparison Method

Forced Choice Method

Forced Distribution Method

Management by Objectives

Ranking

Subjectivity vs. Objectivity Researchers have found that personal preferences, prejudices, appearances, first impressions, race, and gender can influence many performance appraisals. Note: violation of Title VII of the civil Rights Act!!!

Researchers have found that personal preferences, prejudices, appearances, first impressions, race, and gender can influence many performance appraisals.

Note: violation of Title VII of the civil Rights Act!!!

Subjectivity vs. Objectivity Halo error Horn error First impression error Recency error Leniency error Severity error Central tendency error Clone error Spillover error

Halo error

Horn error

First impression error

Recency error

Leniency error

Severity error

Central tendency error

Clone error

Spillover error

Performance evaluation tools: Performance reviews Corrective action Note: See distributed Target forms

Performance reviews

Corrective action

Note: See distributed Target forms

Performance/Leadership Development Tools: 360 Degree Feedback

360 Degree Feedback 10% of companies- gaining on popularity 59% of companies believe that it’s purpose is developmental and 41% evaluational

10% of companies- gaining on popularity

59% of companies believe that it’s purpose is developmental and 41% evaluational

Performance/Leadership Development Tools: Leadership Status (monthly) Companies: Target “ Leadership is the capacity to translate vision into reality.” - Warren G. Bennis

Leadership Status (monthly)

Companies: Target

“ Leadership is the capacity to translate vision into reality.” - Warren G. Bennis

So Why Bother With Performance Evaluation? Employee: knows what’s expected of him/her-clear communication job satisfaction-sense of fairness, equality and fulfillment loyalty to the company training gaps- can be detected and addressed

Employee:

knows what’s expected of him/her-clear communication

job satisfaction-sense of fairness, equality and fulfillment

loyalty to the company

training gaps- can be detected and addressed

So Why Bother with the Performance Evaluation? Company: improved morale reduced turnover improved productivity successful company performance-profitability

Company:

improved morale

reduced turnover

improved productivity

successful company performance-profitability

DOES PERFORMANCE EVALUATION HAVE A POSITIVE OR NEGATIVE EFFECT ON WORK PERFORMANCE?

According to Professor Bård Kuvaas , from the BI Norwegian School of Management Performance, appraisals can actually be counter-productive for employees who are in the greatest need of training and further development and also depend on employees intrinsic job motivation.

According to Professor Bård Kuvaas , from the BI Norwegian School of Management Performance, appraisals can actually be counter-productive for employees who are in the greatest need of training and further development and also depend on employees intrinsic job motivation.

Do you agree or disagree?

Do you agree or disagree?

Sources: “ Compensation”-Milkovich & Newman http://www.innovations-report.com/html/reports/studies/report-58701.html http://www.family-business-experts.com/performance-evaluation.html http://iso9k1.home.att.net/pa/performance_appraisal.html http://www.answers.com/topic/performance-appraisal www.gengroup.com.au/articles/october2002.html

“ Compensation”-Milkovich & Newman

http://www.innovations-report.com/html/reports/studies/report-58701.html

http://www.family-business-experts.com/performance-evaluation.html

http://iso9k1.home.att.net/pa/performance_appraisal.html

http://www.answers.com/topic/performance-appraisal

www.gengroup.com.au/articles/october2002.html